Pakistan’s Consumer Price Index (CPI) inflation eased to 5.6%, down from 6.1% last month on yearly basis, but remained above the 4.1% level recorded in December last year while on a month-on-month (MoM) basis, prices fell by 0.4 percent. This was a clear reversal from a 0.4 percent increase in the previous month, signaling cooling inflation toward the end of the year. but remained above the 4.1% level recorded in December last year.

Urban inflation, measured through the Consumer Price Index (CPI), rose by 5.8 percent on year-on-year (YoY) basis. This was lower than the 6.1 percent increase seen a month earlier, showing some stability in city markets.

Rural inflation increased by 5.4 percent year-on-year (YoY), down from 6.3 percent in the previous month. On a MoM basis, rural prices dropped by 0.6 percent, offering notable relief in non-urban areas.

Sensitive Price Indicator (SPI) based inflation rose by 2.5 percent year on year, sharply lower than 4.2 percent recorded earlier. On a MoM basis, SPI declined by 0.8 percent, reflecting lower prices of essential items.

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Wholesale Price Index (WPI) inflation showed further easing. It increased by just 0.6 percent year on year and fell by 0.9 percent on a MoM basis, indicating reduced cost pressure at the supply level.

Core inflation based on non-food non-energy (NFNE) items remained mixed. Urban core inflation rose by 6.9 percent year on year, slightly higher than the previous month, while rural core inflation eased to 8.1 percent.

Trimmed core inflation showed stability. Urban trimmed inflation stood at 5.5 percent year on year, while rural trimmed inflation was recorded at 6.0 percent, with both remaining largely unchanged on a MoM basis.